Three Make Money Online Scams: Data Entry, Paid Surveys, and MLM
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One of the most popular scams currently being promoted is not a scam as far
as the actual technique is concerned, but from the angle of the language used to
market the technique, namely "data entry".
In real and practical terms, what a person is doing is one step of the
affiliate marketing process whereby ads are written promoting someone else's
product in return for a commission for every sale referred.
However, the whole process is marketed as "getting rich by doing simple
data entry". There are literally scores of products of this nature
currently being promoted. Recently, both Clickbank and Google have kicked out
product owners or promoters of "data entry" related schemes.
Its very important to note that the actual technique itself is certainly not
a scam. It is very legitimate and it earns thousands of people, thousands of
dollars per month. However, the reason it is a scam is due to the deceptive
marketing surrounding it. In addition, when you buy one of these programs and
log in to the customer area, you are strongly encouraged to promote the very
same program you have purchased using the same so called "data entry"
What the owners of such programs want to do is maximise the money they make
by leveraging your time and your advertising budget to their benefit. Years ago,
you probably would have been extremely successful, but now, due to the fact that
so many people are doing it, it is harder to make money just by blindly
following this process without any underlying marketing knowledge.
If the owners of such programs actually gave their customers an education and
taught them proper marketing skills instead of just showing them this affiliate
marketing technique they deceptively call "data entry", there would
have been something of value offered to the customer.
Another very heavily promoted scam is "paid surveys". You must have
come across claims such as "Earn $100 per hour filling out simple surveys".
How this scam works is that people are asked to pay a fee ranging from $35 to
$50 dollars in order to gain access to a list of companies that offer paid
surveys. The surveying companies themselves do not charge people for taking
surveys, rather they pay participants who complete their surveys subject to
certain requirements such as age, demographics, gender etc.
Many, if not most, paid survey offers do not deliver the rewards they promise.
There are a number of ways that paid surveys mislead or inconvenience
participants. Many of them compile personal information about participants to
sell to marketers. Others require people to pay to access a database of survey
opportunities that the participants could find on their own for free.
Survey databases can cost participants money. Many databases let people have
access to lists of paid survey opportunities for a subscription fee. Once people
have paid the fee, they discover that many of the surveys listed do not pay, and
that nearly all of the listings are available elsewhere for free. Many of these
offers seem legitimate because they feature phony testimonials from satisfied
A few people might be fortunate enough to earn some regular money, but it
will never amount to much, no more than a few hundred dollars per month at best!
Multi Level Marketing
As has been noted by Quatloos.com, "once upon a time, multi-level
marketing was a legitimate business which provided a way for small companies to
get their unique products to consumers in small towns and rural areas which had
no access to these products. At this time, the products sold themselves, and the
multi-level aspect was a way of giving a small reward to those who had worked
hard to build the organization. But the focus was always on the product.
Today, and especially with the growth of the internet, it is possible for
consumer to get about whatever they want at competitive prices. There is simply
no real need for distribution "systems" as there once was, and indeed
the focus of all the programs is not on the products they sell -- which are
usually either bogus or are available somewhere else to the public at the same
or lesser prices. Instead, the focus now is solely on recruiting new people to
either buy into the program or else to buy products that are grossly overpriced
(i.e., a $1 bottle of "herbal shampoo" for $26), with the idea that
those people will recruit additional people who will also buy into the program
or themselves buy the grossly overpriced products.
Thus, today just about ALL of the multi-level marketing programs are scams.
In today's internet economy, there is simply no need for multi-level marketing
or the overpriced products that they sell -- meaning that the only thing they
are selling are memberships in anticipation that future memberships will be sold
in the future, which is the classic definition of a pyramid scheme, and thus
Because products are available over the internet to everybody at lower costs
than ever before, claims that "Multi-Level Marketing will take over the
World!" are completely bogus. Indeed, the fact that no MLM schemes sell
significant product to anybody other than the people who bought into the
programs is proof positive that MLM is a dinosaur in today's economy, and exists
only by defrauding people to buy memberships in anticipation of being able to
make a profit defrauding other people into the program."